MIR-43.1┃Choose native USDC collateral parameters for PAR on Polygon PoS

Summary:

This proposal aims to set USDC parameters for PAR collateral on Polygon PoS.

Rationale:

With the recent vote in favor of integrating USDC as new PAR collateral on Polygon PoS, the DAO needs to set the different parameters of this collateral.

We propose :

• Minimum Collateral Ratio (%): 104
• Liquidation Ratio (%): 104
• Liquidation Bonus (%): 3
• Debt Limit (PAR): 500,000
• Initiation Fee (%): 0.20
• Borrow Fee (%/y): decided by PAR onchain price as voted in MIP-25

We have considered the USDC risk’s assessment to chose these parameters

(You can find out the risk assessment details of this asset in the previous MIR discussion)

These parameters aim to be balanced for the users and the protocol, but they were also chosen in a low-risk way to be able to run experiment parameters on the pool without possible issues for the users and the protocol given the potential smart contract risks that may exist.

Note that these parameters are likely to be changed in the future according to the first data that we will collect.

Means:

• Human resources: If the proposal is approved, multisig DAO signers will need to sign and execute transactions to add USDC as collateral on Parallel.
• Treasury resources: No treasury cost

Technical implementation:

1. Set the chainlink oracle related to the USDC: USDC/USD into PriceFeed Contract
2. Add USDC in the ConfigProvider Contract with all parameters decided by the Parallel governance.

Voting options:

• Accept these new parameters
• Against these new parameters
• Abstain

Authors: @starny & @JeanBrasse from Mimo Labs